Numerous studies have shown that companies who export to international markets are more profitable, stay in business longer, are more productive/innovative and generally are not as vulnerable to economic downturn in their home nation.
However, expanding sales into new markets is no easy feat. Often current production, sales and distribution, and operations strategies need to be adjusted, or in some cases entirely revamped.
CEC has consulted dozens of companies on the development of their export sales plan; ranging from global and universal in nature, to country-sector specific. Strategies can range greatly between the intended export destinations and the sector or industry-standard practices. CEC’s range of experience across a great variety of these potential combinations facilitates a scientific and mature approach to determining the relevant risks and mitigating strategies.
With export sales planning comes product or services adaptation, sales channel selection, pricing and competitive analysis, and creation of a business and cash flow model to understand the necessary financing alternatives and go-to-market strategy. CEC is adept at all of these, and can leverage an existing book of business, and relationships to accelerate this process for faster growth and ultimately, better results.
A significant portion of any export sales development plan is understanding the type and number of companies that you will be competing against in the country, region and sector under analysis. Awareness of local, domestic companies, foreign-owned multinationals, and companies with agents and distributor relationships is crucial, as the information can be used to position your organization for differentiation and success.
Locations (production and sales), products-services mix, existing customers and pricing are all important variables to understand in depth for each of your major competitors. If your competitors enjoy a logistical, cost, or another material advantage, your organization should uncover this in the planning stage and take the necessary corrective action prior to an investment decision. Without the proper investigation, incurring a number of sunk costs may be ill-advised, as your export will become less flexible.
EXPORT MARKETABILITY STUDIES
Often, companies have the desire to export their products or services, but do not know where to start, or even where to go. Without a specific target destination in mind, CEC has been asked to explore, discover and tabulate results to make recommendations on the best course of action for a company’s export sales plan. These open-ended projects often convert into market-entry strategy development once the scope of work has been completed on identifying the most likely jurisdiction to succeed in.
By combining the commercial and technical aspects of each organizations’ products-services mix, CEC is able to take holistic, integrated approach to the questions: “where?” and “why?”